Securities regulators in Canada have taken action to encourage more companies to add women to their boards of directors and to senior management. Rather than set quotas, the regulators will require companies listed on their stock exchanges to report annually on their approach to involving more women in the top jobs.
Seven out of ten provinces and two out of three territories have signed onto the new rules that will go into effect on December 31.
Women comprised 12.2 per cent of the directors in the S&P/TSX composite index in 2013, but more than 40 per cent of boards have no female representation at all.
Companies will have to put written policies and targets in place and it is hoped that disclosing the information to investors will make them more accountable in their decision-making.
The question is, will it lead to the presence of more women in Canada’s boardrooms.
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